Financial Performance - Total revenue for the period ended September 30, 2024, was R$2,052,720, a decrease of 13.2% compared to R$2,365,956 for the same period in 2023[6] - The company reported a loss for the period of R$267,058, compared to a loss of R$70,997 in the same period last year, representing an increase in losses of 276.5%[6] - Operating profit for the period was R$13,715, a recovery from an operating loss of R$27,568 in the same period last year[6] - The company reported a basic and diluted loss per share of R$2.19 for the period ended September 30, 2024, compared to a loss of R$0.59 in the same period of 2023[160] - Revenue from contracts with customers totaled R$2,052,720 for the three months ended September 30, 2024, down from R$2,365,956 in the same period of 2023, primarily due to lower retail sales in Brazil[163] Assets and Liabilities - Total current assets rose to R$7,017,632, an increase of 12.9% from R$6,215,124 as of June 30, 2024[3] - Total liabilities increased to R$7,970,042, up from R$6,989,709 as of June 30, 2024, reflecting a rise of 14.2%[5] - Total assets as of September 30, 2024, amounted to R$9,058,371,000, with Brazil Ag Retail holding R$7,345,163,000[36] - Total liabilities decreased to R$63,191 as of September 30, 2024, from R$77,542 on June 30, 2024, indicating a reduction in financial obligations[137] Cash Flow and Liquidity - Cash equivalents decreased to R$510,862 from R$911,335, a decline of 43.9%[3] - Net cash flows used in operating activities amounted to R$735,772 thousand for the three months ended September 30, 2024, compared to R$590,494 thousand in the same period of 2023, reflecting an increase of approximately 24.6%[10] - The Group's cash equivalents at the end of the period were R$510,862 thousand, a decrease from R$564,312 thousand at the end of September 30, 2023, representing a decline of about 9.5%[10] Trade Receivables and Inventories - Trade receivables increased significantly to R$3,286,144, up 18.6% from R$2,769,757 in the previous quarter[3] - The Group's trade receivables increased to R$467,085 thousand in September 2024 from R$446,075 thousand in September 2023, showing a rise of approximately 4.4%[10] - The Group's inventories decreased significantly from R$643,982 thousand in September 2023 to R$387,419 thousand in September 2024, a reduction of about 39.8%[10] - The company reported a total of R$2,184,810,000 in inventories, which is crucial for meeting future demand[36] Financing and Debt - Total borrowings as of September 30, 2024, were R$1,257,240, a slight increase from R$1,225,570 as of June 30, 2024, reflecting a growth of 2.6%[108] - The average interest rate for debt contracts in Brazilian reais indexed to CDI increased to 16.19% as of September 30, 2024, from 14.52% as of June 30, 2024[109] - The Group's total financial liabilities due within one year as of September 30, 2024, amounted to R$7,262,315 thousand, compared to R$6,308,701 thousand as of June 30, 2024, indicating an increase of about 15.1%[69][70] Risk Management - The Group's liquidity risk management includes maintaining sufficient cash reserves and bank credit facilities to meet obligations without incurring losses[67][68] - The Group's exposure to foreign exchange risk is primarily related to the U.S. dollar, affecting the pricing of agricultural inputs[76][78] - The sensitivity analysis indicates that a 25% increase in the CDI Rate could lead to an expense impact of R$250,061 thousand on profit or loss[75] Corporate Strategy and Development - The company is focusing on expanding its market presence in Latin America, particularly in Colombia and Ecuador[35] - New product development efforts are ongoing, particularly in the Crop Care segment, which includes proprietary products[35] - The Group's strategy includes entering into purchase and sale contracts at similar conditions to manage commodity price exposure effectively[85] Other Financial Metrics - The Group's interest paid on borrowings increased to R$91,764 thousand in September 2024 from R$84,501 thousand in September 2023, reflecting an increase of about 8.5%[10] - The Group's share of profit from an associate showed a loss of R$3,915 thousand in September 2024, compared to a profit of R$967 thousand in September 2023, indicating a significant decline in performance[10] - The total provisions for probable losses from civil, tax, labor, and environmental contingencies amounted to R$15,354 as of September 30, 2024, up from R$14,002 as of June 30, 2024[132]

Core Viewpoint - Lavoro Limited reported a challenging fiscal first quarter of 2025, with significant revenue declines driven by market headwinds and liquidity constraints in Brazil's agricultural sector, while also indicating a commitment to strategic measures for recovery [2][4][23]. Financial Performance - 1Q25 consolidated revenue decreased by 13% year-over-year to R$2.05 billion (-24% in USD), with Inputs revenue down 9% and Grains revenue down 52% [4][5]. - Gross profit increased by 10% to R$321.2 million, with gross margins expanding by 320 basis points to 15.6% [5][8]. - Net loss for 1Q25 was R$267.1 million, compared to R$71.0 million in the prior year, largely due to changes in deferred tax assets and higher finance costs [5][8]. Segment Performance Brazil Ag Retail - Revenue decreased by 23% year-over-year to R$1.55 billion (-32% in USD), with Inputs revenue down 19% and Grains revenue down 63% [13][14]. - Gross profit grew by 7% to R$189.0 million, with gross margin expanding by 350 basis points to 12.2% [13][14]. - Adjusted EBITDA decreased by 6% to R$45.1 million, impacted by higher SG&A expenses [13][14]. Latam Ag Retail - Revenue increased by 4% to R$337.0 million (-8% in USD), supported by a stronger Colombian peso [17]. - Gross profit rose by 7% to R$47.8 million, with gross margins expanding by 40 basis points to 14.2% [17]. - Adjusted EBITDA decreased by 32% to R$10.4 million, primarily due to increased credit provisions and personnel costs [17]. Crop Care - Revenue surged by 68% to R$293.7 million (+48% in USD), driven by strong performance from subsidiaries [21]. - Gross profit rose by 11% to R$84.3 million, but gross margins contracted to 28.7% due to changes in product mix [21]. - Adjusted EBITDA increased by 24% to R$35.9 million, reflecting improved gross profit [21]. Revised Guidance - Lavoro revised its FY2025 revenue outlook to a range of R$6.50 billion to R$7.50 billion, with Inputs revenue projected between R$5.90 billion and R$6.90 billion [23][24]. - In USD terms, FY2025 consolidated revenue is now projected to range between $1.12 billion to $1.28 billion [24].

Core Viewpoint - Lavoro Limited, the first U.S.-listed agricultural inputs retailer in Latin America, is set to release its financial results for the fiscal first quarter of 2025 on February 3, 2025, before market opening [1] Group 1: Financial Results Announcement - Lavoro will issue its financial results for the fiscal first quarter 2025 on February 3, 2025 [1] - A conference call and audio webcast will be held at 8:00 a.m. ET (10:00 a.m. BRT) to discuss the results [1][2] Group 2: Company Overview - Lavoro is Brazil's largest agricultural inputs retailer and a leading producer of agricultural biological products [3] - The company operates across Latin America, including Brazil, Colombia, Ecuador, and Uruguay, serving approximately 77,000 customers [3] - Lavoro employs over 1,000 technical sales representatives who provide agronomic recommendations to farmers [3]

Financial Data and Key Metrics Changes - Consolidated revenue for fiscal year 2024 grew by 6% to $1.89 billion, driven by a 61% increase in Grain revenue, particularly in barter operations [25] - Full year gross profit decreased by 19% to $268.4 million, with gross margin compressing by 430 basis points to 14.2% due to input price deflation and a less favorable product mix [26] - Adjusted EBITDA for the year was $53.4 million, reflecting a 64% decline year-over-year primarily due to gross margin compression and increased provisions for credit losses [26] - Net loss for the year was $154.6 million compared to a net loss of $43.7 million in the previous year [27] Business Line Data and Key Metrics Changes - In Brazil Ag Retail, revenue decreased by 2% to $192.5 million, with Inputs revenue declining by 16% due to strategic decisions to delay shipments [31] - Crop Care revenue surged by 87% to $19.9 million, but gross profit declined by 29% to $5.8 million due to product mix effects [33] - Latam Ag Retail revenue increased by 5% to $65.2 million, with gross profit rising by 10% to $10.4 million [32] Market Data and Key Metrics Changes - Inputs revenue in Brazil Ag Retail declined by 6% to $202.8 million, affected by lower Input sales and currency conversion [28] - Farmer profitability for crop year 2024/2025 is projected to improve, with increases in local grain prices and stable input prices [14] - Credit dispersed to farmers decreased by 30% year-over-year, reflecting liquidity issues stemming from previous droughts [17] Company Strategy and Development Direction - The company plans to optimize its retail network by consolidating stores to capture fixed cost savings while maintaining service levels [22] - For fiscal year 2025, the company expects consolidated revenues to range between R$8.6 billion and R$9.2 billion, with a focus on improving margins and operating efficiency [23] - The company aims to grow slightly above market rates despite a projected contraction of approximately 10% in Ag Retail Inputs markets [21] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are short-term challenges, farmer demand for inputs is strong, and liquidity issues are expected to resolve with upcoming crop seasons [19][20] - The company anticipates that the market environment in Brazil is turning, with improved profitability for farmers and stabilized input prices [14][35] - Management expressed optimism about the mid-term outlook for farmers, despite current liquidity constraints [35] Other Important Information - The company reported a consolidated net debt-to-adjusted EBITDA ratio of 4.2, which drops to 3.4 when excluding payables related to acquisitions [34] - Adjusted net loss for the year was $144.9 million compared to an adjusted net profit of $30.9 million the previous year [27] Q&A Session Summary Question: Guidance for fiscal year cadence - Management indicated that the seasonality for fiscal year 2025 is expected to be similar to the previous year, with no significant changes anticipated in quarterly performance [39] Question: Channel inventories and competitor bankruptcy impact - Management noted that input prices are stabilizing and channel inventories are mostly normalized, with strong demand from farmers despite competitive pricing in some regions [40][41] Question: Operational cost savings and EBITDA impact - Management expects most EBITDA recovery to come from margin improvements, with additional benefits from optimizing the retail footprint [42] Question: Farmer profitability and behavior changes - Management observed that farmers are currently cautious in their buying decisions but are increasingly concerned about securing input availability, which is driving demand [45] Question: Timing of planting seasons and drought conditions - Management reported that soy planting in Brazil is slightly delayed compared to last year but is progressing faster due to recent rains [51] Question: M&A strategy in the current environment - Management indicated a focus on organic growth opportunities rather than M&A, although they remain open to interesting targets [52]

FY4Q24 Earnings Presentation Forward Looking Statements 2 The contents of any website mentioned or hyperlinked in this presentation are for informational purposes and the contents thereof are not part of or incorporated into this presentation. Certain statements made in this presentation release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of w ...

Core Insights - Lavoro Limited reported FY2024 revenue of $1.89 billion, a 5% increase year-over-year, driven by market share gains and sales volume growth despite deflationary input price pressures [1][6] - The company experienced a net loss of $154.6 million for FY2024, significantly higher than the previous year's loss of $43.7 million, attributed to declining gross profit and increased finance costs [4][6] - Adjusted EBITDA for FY2024 was $53.4 million, down from $150.1 million in the prior year, reflecting lower gross profit and higher operating expenses [5][6] Financial Performance - FY2024 gross profit decreased by 19% to $268.4 million, with gross margins compressing by 430 basis points to 14.2% due to input price deflation and an unfavorable product mix [3][4] - In 4Q24, consolidated revenue increased by 2% year-over-year to $271.1 million, with Grains revenue growing by 41% to $68.3 million, while Inputs revenue declined by 6% to $202.8 million [8][13] - The Crop Care segment saw a revenue increase of 87% to $19.9 million in 4Q24, driven by strong performance in specialty fertilizers [27][29] Segment Analysis - Brazil Ag Retail segment revenue decreased by 2% to $192.5 million in 4Q24, with Inputs revenue declining by 16% to $124.8 million [17][21] - Latam Ag Retail segment revenue increased by 5% to $65.2 million, with gross profit rising by 10% to $10.4 million [23][24] - Crop Care segment gross profit declined by 29% to $5.8 million in 4Q24, with gross margins dropping to 28.9% from 75.9% in the prior year [28][29] Outlook - For FY2025, Lavoro expects Brazil's Ag inputs retail market to decline by approximately 10%, with projected consolidated revenue between R$8.60 billion and R$9.20 billion [31][32] - The company anticipates Adjusted EBITDA growth relative to FY2024, despite the challenging market conditions [31][32]

Core Insights - Lavoro Limited, the first U.S.-listed agricultural inputs retailer in Latin America, will release its fiscal fourth quarter 2024 financial results on October 31, 2024, after market close [1] - A conference call to discuss the results will be held on November 1, 2024, at 8:30 a.m. ET [2] Company Overview - Lavoro is Brazil's largest agricultural inputs retailer and a leading producer of agricultural biological products [2] - The company serves 72,000 customers across Brazil, Colombia, and Uruguay, supported by over 1,000 technical sales representatives and more than 210 retail locations [2] - Lavoro's digital marketplace and solutions enhance productivity for small and medium-sized farmers by providing access to emerging agricultural technologies [2]

Core Viewpoint - Lavoro Limited has established a new R$310 million (approximately USD$55 million) credit facility to support its working capital needs and general corporate purposes, marking a significant step in optimizing its capital structure and supporting long-term growth plans [1][2][3]. Group 1: Financial Developments - The new credit facility has a three-year term and is financed through a newly established Agribusiness Credit Rights Investment Fund (FIDC-Fiagro) [1][2]. - This facility is Lavoro's second FIDC-Fiagro, following the inaugural R$160 million facility established in 2022 [2]. - The issuance is split into two series maturing in July 2027 and is managed by Kanastra Administração de Recursos, with Itaú BBA as the lead coordinator [3]. Group 2: Company Overview - Lavoro Limited is the largest agricultural inputs retailer in Brazil and a leading producer of agricultural biological products, listed on the Nasdaq under the tickers "LVRO" and "LVROW" [4]. - The company serves 72,000 customers across Brazil, Colombia, and Uruguay, supported by over 1,000 technical sales representatives and a network of over 210 retail locations [4]. - Lavoro empowers small and medium-sized farmers by providing access to the latest agricultural technologies and agronomic recommendations throughout the crop cycle [4].

Core Viewpoint - Lavoro Limited has established a new R$310 million (approximately USD$55 million) credit facility to support its working capital needs and general corporate purposes, marking a significant step in optimizing its capital structure and supporting long-term growth plans [1][2][3] Group 1: Financial Developments - The new credit facility has a three-year term and is financed through a newly established Agribusiness Credit Rights Investment Fund (FIDC-Fiagro) [1][2] - This facility is Lavoro's second FIDC-Fiagro, following the inaugural R$160 million facility established in 2022 [2] - The issuance is split into two series maturing in July 2027 and is managed by Kanastra Administração de Recursos, with Itaú BBA as the lead coordinator [3] Group 2: Company Overview - Lavoro Limited is the largest agricultural inputs retailer in Brazil and a leading producer of agricultural biological products [4] - The company serves 72,000 customers across Brazil, Colombia, and Uruguay, supported by over 1,000 technical sales representatives and a network of over 210 retail locations [4] - Since its founding in 2017, Lavoro has focused on empowering small and medium-sized farmers by providing access to emerging agricultural technologies [4]

Core Insights - Lavoro Limited reported a 6% year-over-year increase in revenue for 3Q24, reaching $514.2 million, driven by market share gains and volume growth despite deflationary pressures in input prices [4][6][16] - The company anticipates improved farmer profitability in the upcoming crop year, but current market conditions are leading to delayed purchasing decisions among farmers, impacting short-term results [2][4] - Lavoro has updated its FY2024 guidance, projecting consolidated revenue between $1.80 billion and $1.95 billion, with Adjusted EBITDA expected to range from $46 million to $55 million [16][19] Financial Performance - Revenue for the Brazil Ag Retail segment increased by 5% to $450 million, with grains revenue growing by 61% to $86.8 million, while inputs revenue declined by 3% to $363.2 million [9][10] - The Crop Care segment saw a 30% increase in revenue to $22.1 million, primarily due to strong growth in biological products [13][15] - Gross profit decreased by 16% to $60.2 million, with gross margins contracting by 310 basis points to 11.7% due to input price deflation and a less favorable sales mix [4][6][7] Segment Analysis - In the Brazil Ag Retail segment, inputs revenue was negatively impacted by input price deflation and drought conditions, despite significant volume increases in crop protection and fertilizers [9][10] - The Latam Ag Retail segment revenue increased by 5% to $50.5 million, supported by currency appreciation and strong fertilizer sales, although impacted by lower corn seed revenue due to drought [11][12] - The Crop Care segment's gross profit grew by 14% to $9.1 million, but gross margins decreased to 41.2% due to tactical price reductions and increased freight rates [13][15] Market Outlook - The company remains optimistic about the long-term fundamentals for Brazilian farmers, expecting short-term challenges to dissipate and growth to resume [2][4] - Lavoro's proactive recruitment of agronomists has resulted in an additional $35 million in future net sales potential, contributing to a total of over $150 million for the year [2][4] - The updated guidance reflects the company's response to more challenging market conditions than previously anticipated [16][19]